Management can survive only through superior competence and continually improving performance. Drucker has emphasized the importance of role of management not only in business but also on political state of affairs of many countries. He asserted that only management can help most of the countries to come out of their economic and/or political struggle and build their economies.
Drucker’s seven key elements, as described by Hutton and Holbeche, (Drucker, 2007a) that influenced organisational thinking and practice to a large extent include, scientific management as the key to productivity; decentralization as the basic principle of organisation; personnel management as the orderly way of fitting people into organisation structures; manager development to provide for needs of tomorrow; managerial accounting for use of analysis and information as the foundation for firm decision-making; marketing; and long-range planning (Drucker, 2007b).
Drucker’s philosophy of management was based on five basic principles: setting objectives, organising, motivating and communicating, establishing measurements of performance, and developing people and self. Drucker refers to these principles as manager’s responsibilities. However, some of these principles have been criticized by others. For example, Parkinson argued that some of Drucker’s principles are vague and others are still to be defined. He also felt that Drucker’s ignorance of a specific issue/problem seems greater than his knowledge. Some of leading management theories of the 20th century contributed by Drucker include, management by objectives; putting the customer first; the role of chief executive in corporate strategy, and structure follows strategy.
Drucker proposed the theory of the business, in which he contended the fact that businesses are run on a